Japanese yen traders face a mixed outlook against the US dollar following a sharp rebound from lows, according to UOB Group strategists Quek Ser Leang and Lee Sue Ann. USD/JPY recovered after dropping to 161.26, with immediate upside expected to remain limited between resistance levels of 161.60 and 162.45 during current trading sessions. The near-term picture remains uncertain, with the currency pair projected to trade within a defined range of 160.60 to 163.00 over the next one to three weeks. This neutral stance suggests neither bulls nor bears hold a clear advantage in the immediate future, keeping the pair range-bound despite recent volatility. Forex traders should prepare for continued sideways movement rather than a decisive breakout in either direction. The relatively tight trading band indicates limited momentum for major directional plays on the yen cross.
FXnCO Insight
Range traders should focus on selling near 162.45 resistance and buying near 160.60 support, avoiding directional bets until a clear breakout occurs beyond the established band.
Source: FXStreet